Superannuation Changes | July 2021

Make sure your business is compliant this financial year!

By K+P Team  |  29 Jun 2021

Superannuation Update

SGC Increases to 10% from 1 July 2021

On 1 July 2021, the super guarantee rate will rise from 9.5% to 10%. If you have employees, you will need to ensure your payroll and accounting systems are updated to incorporate the increase to the super rate. If you need help to work out how much super you need to pay your employees after the rate increases, please contact your Client Director today.

 The super rate is scheduled to progressively increase to 12% by July 2025. You can find the scheduled rate increases and dates below:

super table 2021For more information, please refer to the ATO website here 

Increase to Concessional Contribution Caps from 1 July 2021

From 1 July 2021, the general concessional contributions cap is $27,500 for all individuals regardless of age (up from $25,000). From 1 July 2018, members can make 'carry-forward' concessional super contributions if they have a total superannuation balance of less than $500,000. Members can access their unused concessional contributions caps on a rolling basis for five years. Amounts carried forward that have not been used after five years will expire.

Increase to Non Concessional Contribution Caps from 1 July 2021

From 1 July 2021, the non-concessional contributions cap will increase from $100,000 to $110,000. Members under 65 years of age may be able to make non-concessional contributions of up to three times the annual non-concessional contributions cap in a single year. If eligible, when you make contributions greater than the annual cap, you automatically gain access to future year caps. This is known as the ‘bring-forward’ option.

Learn more about contribution caps and rollovers

If you are planning on contributing to super before the end of FY 2021, contributions must be made and cleared by your super fund prior to 30 June 2021. 

Please contact your Client Director today if you have any questions at all. 

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